4 F’s and True Believers

Not necessarily in this order of importance, but count us as true believers in:

Manufactured Homes,

America as a Constitutional Republic with free enterprise,

and in the four F’s – Faith, Family, Flag, and Fortune (career).

Count me as a pragmatist too. In both trade publishing and in our professional services to the industry, we go where the evidence leads us.

To rephrase, it’s practical to have faith – among other reasons – because its supported by the evidence, and establishes a moral compass outside of one’s immediate self perceived interest. Faith is good.

We could run through the other four Fs in the same manner. They are each proven, practical, principled, and profitable when properly understood and applied.

So we believe in Manufactured Housing (MH) within that broader context of the Four F’s.

The Industry’s Best Homes Ever?

Many believe that the quality, durability, appeal and value of federally regulated HUD Code manufactured homes has never been better.

Without arguing that claim either way, consider this question. If these are the industry’s best homes ever, then why isn’t Manufactured Housing doing as well in new home shipments and MH sales as say 20, 30 or 40 years ago?

Don’t try and take an easy answer, like say ‘financing.’ Back in the 1980s – for example – sales were higher, and interest rates were sky high at the start of the decade. The product wasn’t as good then as today’s, ditto the lending, and yet they sold more homes. Why?

Editorially and based upon fact checks, we disagree with some of the conclusions and claims cited by the Urban Institute’s recent look at the question – “Manufactured homes could ease the affordable housing crisis. So why are so few being made?”

But we commend the Urban Institute for raising the discussion topic! They have asked the right question. It is one that everyone in the industry that wants to grow in a sustainable fashion must seek to resolve.

Some are happy, because the industry is back near 100,000 shipments annually. Certainly, that’s good news, given where the industry’s shipment levels where in 2009.

But that’s not good enough. Not by a long shot. When the nation needs some 8.3 million housing units a year, manufactured homes ought to be doing several hundred thousand new home sales a year.

Today’s Masthead won’t editorially suggest the causes or the solutions, per se.

What we will do is ask you to take a good look at the proverbial elephant in the room.

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Watch the Warren Buffett video above.

While one may agree or disagree with Mr. Buffett’s politics or business practices, there is no denying his business success. So those success tips the Berkshire Hathaway chairman describes ought to provide lessons for everyone in the industry, regardless of the size of their enterprise.

Then, with those quotes and tips from Buffett in mind, begin to dive into the resources linked below.

Acknowledging that a challenge exists – and understanding the issues involved – are the first steps in all problem solving.

It is a point that Mr. Buffett and business-man-turned President, Donald J. Trump both happen to agree upon.

Namely, that you should know all that you can about an issue that impacts your career or business. Sound advice, from different ends of an emerging national debate.

Research, reading, viewing as needed, and robust discussion are how those answers are going to be discovered.

Speaking as true believers in the 4Fs and manufactured housing, it’s crazy not to get to the root issues that keep the industry from achieving its previous new home sales levels.

Given today’s widely acknowledged manufactured home quality, and the huge need for affordable housing, it’s an issue that is begging for answers. ## (Industry commentary and analysis.)